Laurion Mineral Exploration Inc V.LME

Is there value in this price?

[DouglasGVass]

I know that many of you think that all I do for LME is post on the Stockhouse forum but let me remind you that I am the Investor Relations Consultant for the company.  I answer questions and requests from investors via email, forums, phone calls etc.  I speak to Cynthia frequently and try to do my best to liason between shareholders and corporate management.  In the past week I have been fielding more inquiries due to the lower share price.  So I want to ask you all, "Is there value in this share price?"  Now I understand that this is subjective and everyone will have a very different answer but let me give you some perspective.  Banyan gold was mentioned in a comment last week and I want to point out that they have stated they have an inferred mineral resource of 7M oz.  The CEO, Tara Christie, in the interview below indicates that buying shares in her coming at the current price is the equivalent to purchasing gold at $9/ounce.  Banyan Gold currently trades at a market cap of $95M with 285M shares outstanding.  Tara holds approx 3% of the total shares which is very high for industry standards.  Banyan is located in the Yukon in a prolific mining area bordering the likes of Victoria Gold and Hecla mining.  They boast being close to roads, power, water and airstrips.

Why would I share all this information about Banyan Gold?  Because it is the closest comparable that I can find to LME in the junior mining exploration sector.  Similar to LME, Banyan has a woman CEO with a similar background to Cynthia although less years experience.  The current market cap and shares outstanding of LME are almost identical to Banyan.  In Banyan's corporate presentation it states that they are proving out $10M+ GEO's which is the same outlook as LME.  Close to roads, power, water and infrastucture is very important and both companies have this.  Both are in great miining jurisdictions.  The one area that LME wins is mangement's "skin in the game" with LME's leaders holding significantly more shares than Banyan's leaders.

So what is my point?  It is the fact that Banyan is trading at $0.33/share today and LME is trading at $0.35/share.  If Banyan's CEO is saying that purchasing her company shares is the same as buying gold at $9/ounce I would argue that the same goes for LME.  So my point is that similar junior miner's like LME are trading at unbelievably low valuations.  The big difference between LME and Banyan is that LME is actively taking steps toward a buyout.

So is there value in $0.35/share?  Is there value in buying gold at $9/ounce?  When LME gets bought out will the price be higher than $0.35/share?  Will a buyer pay $300/ounce when gold is trading over $2200USD/ounce?

I have bought shares at this price three times now in the last five years and I can't believe I've been given this opportunity 3 times.  I believe that Banyan Gold and LME are tremendously undervalued especially at the current gold price.  Don't look at today's share price as a negative but on the contrary look at it is a positive opportunity.  If you are selling today I can understand that this price is disappointing to you but if you are waiting for a BO I can assure you that this price is a bargain.


https://www.youtube.com/watch?v=gPvcJBLBrqk

[Wmaver]

Ah there it is, the nice hand holding, comforting statement that helps me sleep at night!  More of these, please!! 

[Bracko]

The big difference between LME and Banyan is that LME is actively taking steps toward a buyout.  So Doug are you implying that they are in negotiations as we speak???   

[Wmaver]

Lol we all wish he could answer that! You are smart enough to know he means, special committee,  USCG, saying it in every PR they release.

[GoldenBull999]

Im honestly expecting the whole uscg thing to be a flop come august when that commitment expires...not to mention a special committee member offloading a million shares the last while.  But hey, prove us all wrong.   If only fancy words and optimism actually meant anything in the real world. 

[JoJoHairBlo]

They could easily grant USCG an extension as well.  There's nothing that says they can't.